Some of the first Internet-only commercial radio stations emerged in 1995. NetRadio "was one of the Internet's original Webcasters," eventually "streaming more than 100 channels including both music and spoken material." Nonetheless, NetRadio Corporation ceased operations in 2001.
On May 1, 2007, the United States Copyright Royalty Board approved a rate increase in the royalties payable to performers of recorded works broadcast on the internet. This was the result of a two year proceeding, with dozens of witnesses and hundreds of documents from over twenty different parties, including large and small webcasters, NPR, college stations, and SoundExchange. The CRB was privy to private financial records and business models of the webcasters, and after reviewing the evidence and testimony, issued their decision on May 1, 2007 (which is currently under appeal). If enforced, this decision will undermine the business models of many Internet radio stations, which had previously relied on the rate of $0.000768 per song that had been unchanged from 1998-2005. These rules were scheduled to go into effect on May 1, 2007, with the first due date being July 15, 2007, and apply retroactively to January 1, 2006.
